Introduction To effectively subsist in the contemporary world , Companies have embraced the total rewards system and made it part of human resource management practice with small and big organizations employing it to enhance their competitiveness in the local and global markets. First introduced in 2000, the total reward theory shows the vibrant relationships that employers have with their employees. However, "WorldatWork - Total Rewards ModelTotal Rewards Model SVG Graphic",( 2016) states that ; this concept has developed to describe means through which employers and employees benefit from each other as well as how external and global business environment influence the productivity , retention and engagement at work .
Elements to
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It refers to fixed and variable monetary payments made by employers to their employees for services delivered. The Walt Disney company is an example of an organization that has put in place a total rewards system whereby compensation is a component. The company makes employees understand what their pay both base and others are. In addition The Walt Disney company has broadened its reward strategies beyond money and one of the non-monetary compensation that is part of the current reward system is benefits. Benefits are packages of programs that employers offer employees in addition to compensation, generally with an aim of ensuring security for the employees and their families. Benefits come in various forms including; health insurance , savings and retirement programs, and income protection. Besides compensation and benefits, most employees work longer for an organization that appreciate their input through recognition.
Recognition
Recognition is the simple acknowledgment or paying keen interest to what employees are doing. An organization like The Walt Disney Company has instituted formal and informal mechanisms of identifying and supporting employees with exemplary performance or innovation that is likely to move the company to success.
Performance
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According to Jiang, Xiao, Qi, & Xiao, (2009): Introducing total reward strategy probably improves not only employees ' work efficiencies, job satisfaction and job performances but their psychological contract and organizational citizenship behaviors. Because of this effective management method, organizations have more channels to acquaint with employees ' work life and other needs; in other way round, the personnel can keep positive attitude towards the organizations, . . . (Pg. 180)
Therefore, attractive total rewards make happy employees and ultimately works towards the success of the company.
Challenges of balancing a global workforce and the aspect of external
Compensation is made of a base salary (paid by the hour, work or the year; excluding overtime or bonuses), variable pay (bonuses, profit sharing/stock options which work hand and hand with the performance of the company), and benefits (to include health insurance/savings plans – 401(k), or tuition reimbursement). The traditional way of determining base pay for jobs was to compare jobs in the same industry. Now industry and market, no long work by themselves, the current thinking is more person-based that considers knowledge, skills, and competencies of the work. This, however, is best suited for high-performing environments that remain flexible in their deployment of human capital.
Overall, the score of the article is a 95 out of a 100 because the author, Carol Patton was able to lure me into reading her entire piece. Additionally, after reading the article, I felt that I gained a bit of knowledge on the importance of reward programs and how it should be a “must have” in the work environment.
Manas, T. M., & Graham, M. D. (2003). Creating a total rewards strategy: A toolkit for designing business-based plans. New York: American Management Association.
There are many traditional and non-traditional rewards. Aflac uses to meet the organizational objectives. Aflac supports a total reward program. These programs begin with employee need assessments. Employee surveys focus on group help and improve the employee retention. It is well known to help solve many issues and identify marketing initiatives as well as employees along with
The total rewards approach challenges the human resources (HR) professional to look at the entirety of the work experience, not just the traditional compensation and benefits packages, when developing strategies to recruit, retain, and motivate employees (Giancola, 2009; Pregnolato, Bussin, & Schlechter, 2017; Stoskopf, 2004). Total rewards approach has five components – base compensation, benefits, performance and recognition (Giancola, 2009; Gomez-Mejia, Balkin, & Cardy, 2016; Pregnolato, et al., 2017; Stoskopf, 2004), work-life balance, and development and career opportunities (Giancola, 2009; Pregnolato, et al., 2017; Stoskopf, 2004). These components, when integrated into a comprehensive total rewards
In order to continue to thrive and compete at its highest level and potential, we decided to put a total rewards program in place. Rewards programs will help engage employees and bring out their competitive spirit. If employees continue to receive rewards for their hard work, they will continue to work harder. This rewards program will also build the level of trust between the employees and managers. When employees receive rewards for their hard work, they feel valued at the company that employs them. When they feel valued at work, then their morale is at a high level. The sales associates that have a high level of morality often get more sales. These increased sales are the foundation of the success of the company. This not only will give us a competitive edge, but it will also create a pleasant work environment. A total rewards programs will help benefit both the company and the staff ("About T-Mobile Usa, Inc.",
...esigned to realize the dream alive. Therefore, to ensure success in achieving these goals, the appreciation is important . If the lack of appreciation given to employees then there will be a decline in driving organizational productivity. If acknowledgment is given the workers themselves would feel appreciated when their welfare is not compromised. Employers should not underestimate the welfare of workers. Employees who are satisfied with the compensation and benefits given to them will not cause any problems for the employer . Instead, they will continue to work diligently and indirect labor productivity will certainly increase. So it is clear here that the intrinsic rewards are important parallel with extrinsic reward . Perhaps the workers see the rewards extrinsic more meaningful monetary , in fact, intrinsic rewards are more important as a reward for the future.
One of the core benefits that employees receive is an extremely generous incentive program which is directly proportional to their accomplishments:
The company motivates employees by providing “reward” and “engagement”. Reward is evaluating the employees properly and giving reasonable salary, and are divided into three parts:
Monetary incentives is a great way to motivate employees to produce outstanding work performance. What better way to influence employees to do their best than by offering them extra cash. Not only does the employee get rewarded but the company is able to increase productivity. Monetary incentives not only increase employees productivity, it can also improve attitudes therefore
A number of motivational theories explain how rewards affect the behavior of individuals and teams. Performance related pay can have a motivational effect. Employees are motivated to increase prod...
... benefits should be something earned based on the job performance of the employee. This helps the employee to feel appreciated and it motivates the employee at the same time. The benefit further helps the organization to retain the employee.
Incentive reward engagement offers a win-win situation for the employees and the company. Kelleher believes that incentive is a form of recognition and builds engagement through company’s and employee’s obligations towards a common goal (2014). The company has a “Growth Incentive Scheme” for the production workers. Special monetary incentives are provided should the workers achieve the monthly output target. Through the rewards, employees feel motivated towards their work and thus, contribute towards the company’s
The key communication components of the total rewards system are first knowing as an employee what does the company offer to you as employees. Then how you can obtain some of the benefits and what are the requirement for the employees to use them. Therefore, the company needs to have different ways and style of communicating the information to employees. Most time that employees do get like a list or handouts on the different types of benefits and compensation packages is when they first start working for the company. Therefore, companies need to start advising the different types of benefits and compensations. They can do this by posting it on the company bill board in the different departments. Managers can talk about them at different meetings. Also if someone have a question they can go to their direct manager or to the human resource department. The human resource department will be that department that really help the employees in more details. This total reward system will keep people alert of the different
In large organisation, competition is not only in the market for goods and services but also for the quality of employees. As such, a large organization can only become attractive to the most skilled and high quality workers if it has an effective compensation and benefit plan. The key purpose of an effective compensation and benefit system is to provide employees with the right rewards for their work and right behavior in the workplace. Typically, organizational success is determined by the quality of employees an organization has. In turn, the organization can only attract such quality workers and maintain them through effective compensation and benefit